1. Initiation of Arbitration and Submission of the Statement of Claim
1.1. Conditions for Initiating Arbitration Proceedings
- The fundamental prerequisite for resolving a dispute through arbitration is the existence of a valid arbitration agreement between the parties. The arbitration agreement may be concluded either before or after the dispute arises, in the form of an arbitration clause in the contract or a separate arbitration agreement.
Pursuant to the Law on Commercial Arbitration 2010, if there is no arbitration agreement or if the arbitration agreement is invalid, the dispute does not fall within the jurisdiction of arbitration.
1.2. Content and Form of the Statement of Claim
The statement of claim is a written document expressing the official request of the claimant. According to Article 30 of the Law on Commercial Arbitration 2010, the statement of claim must include:
- The date of preparation of the statement of claim;
- Names, addresses, and legal information of the disputing parties;
- A summary of the dispute;
- Specific claims and requests for relief;
- The value of the dispute (if any);
Evidence and accompanying documents
After receiving a valid statement of claim and the arbitration fees, the arbitration center shall notify the respondent and set a time limit for the respondent to submit its statement of defense.
2. Selection of Arbitrators
2.1. Role of Arbitrators
- An arbitrator is the person who directly resolves the dispute and plays a role similar to that of a judge in court proceedings. The quality, independence, and impartiality of the arbitrator have a decisive impact on the outcome of the dispute resolution.
2.2. Principles for Selecting Arbitrators
Vietnamese law recognizes the parties’ freedom of agreement in selecting arbitrators:
- The parties may agree to select arbitrators from the arbitration center’s list or outside the list (if permitted);
- The number of arbitrators is usually one or three;
- If the parties fail to reach an agreement, the arbitration center or the court shall appoint arbitrators in accordance with the law.
Arbitrators must satisfy the legal requirements regarding legal capacity, professional qualifications, professional ethics, independence, and impartiality.
2.3. Constitution of the Arbitral Tribunal
- After the arbitrators are selected or appointed, the Arbitral Tribunal is constituted to resolve the dispute. This stage marks the official commencement of the arbitration proceedings.
3. Arbitration Hearing and Related Procedures
3.1. Principles of Arbitration Proceedings
Arbitration proceedings are conducted based on the following principles:
- Respect for the parties’ autonomy and right to self-determination;
- Assurance of equality between the parties;
- Independence and impartiality of arbitrators;
- Flexible procedures that do not contravene the law.
3.2. Preparation for the Arbitration Hearing
- The Arbitral Tribunal collects and examines evidence, requests the parties to provide documents, and may summon witnesses or order expert examinations. The parties have the right to engage lawyers or representatives to protect their lawful rights and interests.
3.3. Arbitration Hearing
Arbitration hearings are generally conducted in private unless otherwise agreed by the parties. At the hearing:
- The parties present their views, claims, and legal arguments;
- Arguments and rebuttals are conducted;
- The Arbitral Tribunal evaluates the evidence and arguments presented by the parties.
4. Arbitral Award and Enforcement
4.1. Issuance of the Arbitral Award
- After the conclusion of the hearing, the Arbitral Tribunal issues the arbitral award based on the majority opinion. The award must be made in writing and clearly state the legal grounds, the decision, and the obligations of the parties.
The arbitral award takes effect from the date of issuance and is final and binding, and is not subject to appeal or re-examination on the merits.
4.2. Enforcement of the Arbitral Award
The basic principle is voluntary compliance with the arbitral award by the parties. In the event of non-compliance, the prevailing party has the right to:
- Request the competent civil enforcement authority to enforce the award;
- For foreign arbitral awards, request a Vietnamese court to recognize and enforce the award.
5. Methods of Challenging an Arbitral Award
5.1. General Principles
- Arbitral awards are not subject to appeal or protest under appellate procedures. However, the law allows courts to consider setting aside arbitral awards in exceptional cases to ensure the legality of the arbitration proceedings.
5.2. Grounds for Setting Aside an Arbitral Award
According to Article 68 of the Law on Commercial Arbitration 2010, an arbitral award may be set aside if:
- There is no arbitration agreement or the arbitration agreement is invalid;
- The Arbitral Tribunal was improperly constituted;
- The arbitration procedures seriously violate procedural rules;
- The dispute does not fall within the jurisdiction of arbitration;
- The arbitral award contravenes the fundamental principles of Vietnamese law.
5.3. Time Limit and Jurisdiction
- The time limit for requesting the setting aside of an arbitral award is 30 days from the date the award is received. Jurisdiction belongs to the provincial-level People’s Court where the Arbitral Tribunal issued the award.
6. Methods for Resolving Disputes through the BIGBOSS International Commercial Arbitration Center
- To resolve disputes by commercial arbitration at BBIAC, the parties may include one of the following clauses in their contract:
6.1. Standard Arbitration Clause
“Any dispute arising out of or in connection with this contract shall be resolved by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with the Arbitration Rules of the Center.”
In addition, the parties may agree on the following:
(a) The number of arbitrators shall be [one or three].
(b) The seat/place of arbitration shall be [city and/or country].
(c) The governing law of the contract shall be [ ].
(d) The language of arbitration shall be [ ].
Notes:
- Applicable only to disputes involving a foreign element.
- Applicable only to disputes involving a foreign element or disputes in which at least one party is a foreign-invested enterprise.
6.2. Standard Arbitration Clause under Expedited Procedure
“Any dispute arising out of or in connection with this contract shall be resolved by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with the Arbitration Rules of the Center. The parties agree that the arbitration proceedings shall be conducted under the Expedited Procedure as provided in Article 37 of the BBIAC Arbitration Rules.”
In addition, the parties may agree on the following:
(a) The seat/place of arbitration shall be [city and/or country].
(b) The governing law of the contract shall be [ ].
(c) The language of arbitration shall be [ ].
Notes:
- Applicable only to disputes involving a foreign element.
- Applicable only to disputes involving a foreign element or disputes in which at least one party is a foreign-invested enterprise.
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